CHD - Church & Dwight beats Q2 top and bottom line estimates; initiates Q3 and raises FY23 outlook

July, 28 2023 07:01 AM Church & Dwight Company Inc.

2023-07-28 07:01:39 ET

Church & Dwight press release ( NYSE: CHD ): Q2 Non-GAAP EPS of $0.92 beats by $0.12 .
Revenue of $1.45B (+9.0% Y/Y) beats by $30M .
Organic sales grew 5.4% driven by positive product mix and pricing of 5.8% while volume was down slightly but exceeded expectations.
On June 30, 2023, cash on hand was $396.9 million, while total debt was $2.4 billion.
2023 Full Year Outlook: Net Sales raised to ~+8% (previously 6-7%); Organic Sales raised to ~+5%; Gross Margin expansion raised to ~+200 bps; Reported EPS raised to +80% to be $3.03, Adjusted EPS raised to $3.15, +6% vs. $3.12 consensus; Cash from operations raised to ~$1.0 billion.
“For Q3, we expect reported sales growth of approximately 8%, organic sales growth of approximately 4% and gross margin expansion driving double digit gross profit growth, which reflects a continuation of the strong performance we have seen through the first six months of the year. We expect a significant increase in marketing spending and higher SG&A from higher incentive compensation and investments for the future, as well as a higher tax rate. As a result, we expect Reported EPS of $0.63 and Adjusted EPS of $0.66 per share, a 13% decrease from last year’s Adjusted Q3 EPS as investment spending is weighted more to Q3.”

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